Experts say these 7 fintechs are prime takeover targets for 2020, including Robinhood and Chime

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Experts say these 7 fintechs are prime takeover targets for 2020, including Robinhood and Chime
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Big-ticket acquisitions have dominated headlines in 2020, leading to one question: Who's next?

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Less than two months into the year, it's already shaping up to be a banner year for dealmaking by financial firms - particularly for deals with incumbents buying fintechs or newer players.

Whether it's Visa's $5.3 billion planned acquisition of Plaid, Morgan Stanley's $13 billion deal for E-Trade, or Intuit's $7 billion plan to buy Credit Karma, incumbents have not been shy about dishing out cash for younger upstarts.

Ally Financial has also agreed to a $2.65 billion deal for CardWorks. And the asset management space meanwhile is seeing activity among once-rivals, with Franklin Resources $4.5 billion deal for Legg Mason.

Fintechs are even going on the offensive, with LendingClub announcing plans to buy Radius Bank for $185 million in a move that would make it a fully-chartered bank.

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In many ways, the plethora of deals in early 2020 are just a continuation of the end of 2019. Most notably, Charles Schwab announced plans to buy competitor TDAmeritrade for $26 billion, while payments giant PayPal said it would purchase startup Honey for $4 billion.

Speaking at an annual investor day event on Tuesday, JPMorgan CEO Jamie Dimon said: "We're going to be much more aggressive in acquisitions across the board."

Peter Johnson, head of fintech investing at Jump Capital, told Business Insider a consistent theme across all these deals has been customer bases being a driving factor.

"The fintechs with big user bases, lots of consumer data, and proven ability to monetize those users will continue to be prized," Johnson said.

Business Insider spoke to a handful of industry insiders - investors, bankers, analysts, and consultants - to a get a sense of which fintechs and other players could likely be targeted next.

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To be clear, the sources Business Insider spoke to were merely highlighting companies they believed would be attractive acquisition opportunities. The sources did not suggest any of the companies listed are currently in talks with anyone to make a deal.

Experts flagged these seven companies as ones they're keeping an eye on.

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